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We've had a number of other projects that have delayed the plugin release. Some are relevant - like making some improvements to the DMM simulator to allow it to handle larger meshes, and others are longer-term - a cloud version of DMM.

The new plugin will have material regions too. This will let you define multiple materials on a single object. It's a feature that is available in our API -
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The error is likely because you have a tetrahedron in the mesh that is very very thin. DMM can handle inverted tets that happen during simulation robustly, but it can have issue with tets that are inverted upon startup.

I would suggest that you run meshverify on your object prior to turning it into DMM to see if there are any highlighted areas with very thin tets. Assuming that is OK, it is possible that netgen has created a bad inner tet. You can adjust that by slightly varying the

OTOY will be adding DMM to their cloud system. This will allow anyone who is using the OTOY pipeline to simulate and render high-end destruction directly in the OTOY cloud. We are all very excited about this! More details here: http://render.otoy.com/forum/viewtopic.php?f=7&t=41634

If you want to see some neat DMM destruction shots, check out Michael Lemon's demo reel on the DMM Plugin page. He used DMM on "A Good Day to Die Hard", "Red 2", "Man of Steel" (with MPC's Kali), and "Warm Bodies". Michael also worked on the DMM bridge destruction shot for "Abraham Lincoln: Vampire Hunter".